Electricity Has Been Increasing In Price, Here’s Why:
Since 2010 the price of natural gas has fallen 43%. Coal prices have dropped 11%.
So, why has the cost of electricity risen 13% during that same time?
Charles McConnell, former Assistant Secretary of Energy in the Obama Administration, answers this riddle in a video he has produced for Prager University.
In his video, he shows that the money Americans should have saved has actually gone to subsidies solar and wind power. These forms of energy are not money-savers, as we have been told. Unlike coal and gas wind and solar operate at a loss. If the government subsidies dry up, wind and solar go out of business.
As for those who believe that CO2 emissions need to be reduced, Mr. McConnell points out that those emissions were already very low, and getting much lower, long before we began building wind and solar farms. The reduction is because we are using more natural gas and less coal.
The science shows us that CO2 is not actually a driver of climate change, nor it is a harmful pollutant. Actual harmful pollutants from coal and gas plants have been reduced 77% since the 1970s.
Back to the cost of electricity- there are 3 main factors in cost.
1) Cost to produce.
2) Cost to transmit to where it is needed.
3) Taxes and regulations.
The cheapest way to produce is not wind or solar, but coal and natural gas.
With coal and gas, the source of generation can be right by where people use it. For example, a power planet located where the city is means we don't need to send the power across long distances to get it to where it will be used. But wind and solar are produced far away from where we use them the most. That greatly increases the cost.
There is much more to explain here but these are just a few of the reasons why your electric bill keeps going up.
To learn more, watch Mr. McConnell's video, below.